Business, international

BANSAL GROUP: ZERO EXIT ROUTE

Article Abstract:

Bansal group's three companies hit the capital market between 1993 and 1996. Yangir Synthetics Limited (YSL) went public in September 1993. The promoters subscribed 30 percent of the Rs30 million equity. The partner P.T. Prima Comexindo (PTPC) of Indonesia held 10 percent and public was offered 60 percent stake. YSL had an agreement with PTPC for 100 percent buyback of polyester texturised filament yarn. YSL planned to set up a 100 percent export oriented unit at Ankleshwar with an installed capacity of 1,560 tonnes per annum at a cost of Rs49 million. YSL projected that it will start production in September 1993, but it commenced production in December 1993. YSL had projected to post net profit of Rs3.2 million on sales of Rs105.7 million in the first year of its operations. Its projections of sales for second and third year were Rs125 million and net profit Rs5.6 million and Rs7.3 million. It posted net profit of Rs3.6 million on sales of Rs77.8 million in 1994-95. It showed loss of Rs28.2 million on sales of Rs69.9 million in 1995-96. Its loss was Rs9.6 million on sales of Rs31.3 million in 1996-97. YSL has not paid any dividend. It floated another public company in January 1996. It made an offer at par for sale of Rs8 million of its Rs30.9 million equity of Kathayee Cotton Mills Ltd (KCML), Alwaye. The shares were to be listed in Kochi and Ahmedabad exchanges. The shares have not been quoted for the past three years in the two exchanges. KCML projected sales and net profit of Rs167.9 million and Rs2.4 million respectively for 1995-96. It projected sales and net profit of Rs196 million and Rs8.8 million respectively for 1996-97. KCML posted loss of Rs2.7 million on a turnover of Rs135.1 million for 1995-96. It posted sales of Rs98.8 million and loss of Rs39.7 million for 1996-97, eroding its entire equity base. Bansal Group hit the capital market again in May 1996 with a public offer in Bhagwati Cottons Ltd (BCL) for Rs12.5 million. BCL has an equity of Rs50 million. BCL's shares were to be listed in Pune and Ahmedabad stock exchanges. It was not quoted in the two stock exchanges since listing. BCL projected sales and profit of Rs252.5 million and Rs15.6 million respectively for 1995-96. It projected sales and profit of Rs975.4 million and Rs47 million respectively for 1996-97. BCL posted net profit of Rs15.6 million on sales of Rs252.5 million in 1995-96. It merged GPB Fibres with BCL and its net profit improved to Rs48.6 million on sales of Rs975.4 million in 1996- 97. It declared a dividend of 10 percent for 1996-97. It posted sales of Rs864.2 million and profit of Rs1.5 million for 1997- 98. BCL has posted net profit of Rs0.2 million on sales of Rs119.8 million in the first half of 1998-99. BCL scrip was quoted in the Bombay Stock Exchange (BSE) in mid-1998 for Rs11 per share since its equity has risen to Rs155 million due to merger of GPB Fibres with it. The three scrips of the Bansal group are not quoted in any of the exchanges and investors have not been left with any exit route. (rk)(psr)

BLUE STAR

Article Abstract:

Blue Star Ltd (BSL) is a leading player in the air conditioning business and is a market leader in central air conditioning plants and ducted systems. It also has interests in software, data communication, electronic medical equipment and industrial projects. BSL holds a 35 percent market share in the central air conditioning business and a 36 percent market share in ducted air conditioning systems. It also has a presence in window and mini split ACs segment. BSL's total income increased to Rs4,527.7 million and exports to Rs351.9 million in 1997-98. Profit grew by five percent to Rs155.1 million. The company has forged technical alliances with Kilpak of the US for cold rooms and with Climats of Italy for double skin air-handling units. BSL recently hived off its software division into a separate company, Blue Star Infotech. (uh)

ADDING "RELIANCE" TO INJURY

Article Abstract:

Reliance has entered the retail liquefied petroleum gas (LPG) segment with the launch of Reliance Gas in Gujarat. It is feared that once it increases its business it mat stop selling bulk gas to other bottlers who will then have to rely on the high priced imported LPG. Reliance has priced its LPG at Rs180 for a 15 kg cylinder. With the completion of its 15 million tonnes refinery at Hazira, Reliance will be in a position to sell 250,000 tonnes per annum of LPG. (khr)

Comment:

Enters the retail liquefied petroleum gas segment with the launch of Reliance Gas in Gujarat